Polymarket Banned in Portugal, Hungary as Prediction Market Pushback Grows

Polymarket, one of the leading decentralized prediction market platforms, has faced significant regulatory hurdles recently, culminating in service bans in Portugal and Hungary. These actions underscore the rising global pushback against unregulated online betting and derivative platforms operating in the crypto space. In Portugal, regulators reportedly targeted Polymarket for operating without the necessary financial or gambling permits, classifying its activities as unlicensed betting or the provision of unauthorized derivatives. Hungary followed suit, echoing concerns regarding consumer protection and the lack of strict adherence to Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols. Polymarket allows users to create and participate in markets betting on outcomes ranging from political elections and geopolitical events to cryptocurrency prices and economic indicators. While proponents argue the platform offers valuable collective wisdom and highly accurate forecasting, national regulators increasingly view these markets through the lens of traditional financial oversight or strict gambling legislation. As decentralized autonomous organizations (DAOs) govern these platforms, national regulators find it challenging to apply traditional compliance measures effectively. The bans in these two European Union nations serve as a stern warning to crypto prediction markets that decentralization does not grant automatic immunity from national jurisdiction, signaling potential future regulatory actions across other highly scrutinized markets.

Source: Polymarket Banned in Portugal, Hungary as Prediction Market Pushback Grows